Managing Your Finances During COVID-19
During this uncertain period in time, many Australians are facing financial instability and immense pressure to keep their business afloat. To provide relief during this global crisis, lenders are working in conjunction with the government to support those suffering financial hardship caused by COVID-19. At AGM Finance, we are working to provide you with convenient access to that support.
What support is available to you?
If your business and livelihood have been impacted by COVID-19, lenders are allowing for temporary deferment of your loan repayments. This deferment option is different from the deferment option available during a “normal” hardship period. Usually, the amount of money owning in arrears would need to be paid back in entirety after the deferment period.
For many clients, this would mean their payments could double over the three to six-month period directly after their hardship.
Uniquely, COVID-19 related deferments would not be due for repayment until the end of the loan. This means your loan will take three to six months longer to pay off (including with accrued interest), relieving the immediate stress on your business.
How long can I defer my loan?
For the major banks, a loan can be deferred for up to six months. However, smaller lenders are unable to defer payments for a blanket period and are instead using a month- by-month application process.
What are the implications?
For the duration of the deferral period, interest and charges will continue to accrue at the agreed rate and time on any outstanding balances and add to the total loan balance. This means that the total amount of interest payable will be more than it would have been under the original contract term.
AGM Finance is here to help.
As always, our goal is to assist you through good times and challenging times.
If you need support, contact our team and ask about making a deferment application. Once your request is received, we will phone you back within two hours to provide you with personalised advice. Together, we can go through your loan commitment schedule and prioritise which debts can be deferred, and which can remain. We can then approach lenders on your behalf to arrange your application. For those smaller lenders who need to handle deferments month by month, we will work with them month by month, allowing you to focus on your business and the health of you and your families.
Can I still apply for a loan during this period?
Absolutely. Not all Australian businesses are suffering financially because of COVID-19. If you are in a position to grow your business or expand your equipment range, lenders are still processing applications, and we are always here to help you achieve your business
For advice and support, contact our team today on 1300 664 687.
Thank you and stay safe.